MGMA01H3 Lecture Notes - Lecture 8: Test Market, Conjoint Analysis, Convenience Sampling
Document Summary
3 techniques in new product development: conjoint analysis: used during idea evaluation when there is no actual product yet. This helps the company decide what attributes that the consumers value the most in a product by looking at the rankings in between the best and the worst product ideas. It will influence what type of product or products is needed to serve the segments of consumers: simulated test marketing: used during development stage when the marketing mix is evaluated. We run a simulation of a real test market and it estimates initial purchase rate and repeat purchase rates. It is fast and cheaper than actually launching a product on a test market and it is flexible since you have more control over it and different questions can be asked. Controlled test marketing: pick cities for distribution, but what matters is the purchases of a panel of consumers and this data is used for marketing research.
